Ogra striving to regulate growing LPG market

KARACHI: The demand for liquefied petroleum gas (LPG) will surge to 15,000 tonnes a day in coming years from the current 4,500-5,000 tonnes as this is the only sector which has shown robust growth.

Oil and Gas Regulatory Authority (Ogra) Chairman Masroor Khan said that two to three years back, LPG demand was 2,500 tonnes per day.

Addressing a press conference along with LPG stakeholders and leadership of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) at the Federation House on Monday, he said all the fuels in the country’s energy mix have depicted a downward trend. For example, the number of CNG stations has plunged to 1,200 from 3,300 followed by a drop in demand for compressed natural gas (CNG) to 3,000mmcfd from 4,450mmcfd and depressed sales of petrol and diesel.

“LPG is the only fuel that has thrived in terms of demand growth as it can be easily transported to various parts of the country without any role of pipelines,” he added.

Given LPG’s rising usage, Ogra has been striving to regulate the sector besides addressing the issues of decanting and reducing the number of cylinder blasts.

He claimed that LPG cylinder blast incidents in the last three to four months had dwindled after an increase in regulatory checks.

Substandard cylinders

Meanwhile, an office-bearer of the Liquefied Petroleum Gas Industries Association Pakistan (LPGIAP) said that decanting has increased in the last two years.

He said two years back, 170 illegal units were making sub-standard cylinders which has now swelled to 450. It is hard for people to differentiate between standard and sub-standard cylinders and even many unbranded alternatives are available with Ogra’s approved seal.

He added that there is no uniformity in the LPG rates in the country as in most of the cities, LPG is selling above Ogra’s notified rates.

He also questioned the role of Ogra in dealing with rising smuggling of gas from Iran and the sale of liquid, water-mix, sulphate and carbon dioxide LPG in which Ogra has not taken any serious measures which may claim more lives of people.

The Ogra chairman admitted regulatory issues as LPG was being sold even in one to two-kg cylinders.

Penalties/imprisonment

Ensuring the safety of consumers, he said an action plan has been prepared against the manufacturers and sellers of sub-standard cylinders which would be approved by the new government after general elections.

As per the new plan, manufacturers and sellers would face 10 years imprisonment instead of six months besides imposing a fine of up to Rs1 million.

He said a new LPG policy is being brought which would be approved by the new assembly. It would resolve many issues.

On the positive side, he said plans were underway to issue 2,000 new licences for the import of LPG bowser, set up refrigerated terminals at the port for the arrival of bigger vessels and induct an additional 2.8m cylinders.

He agreed that 2,100 tonnes of Iranian LPG were finding their way into the country but consumers were complaining about the mixing of water and chemicals in the gas.